The post Coinbase threatens to abandon support for crypto legislation appeared on BitcoinEthereumNews.com.

Coinbase Global Inc. is putting lawmakers on notice that it might walk away from a key digital asset bill if new restrictions threaten its ability to pay customers who hold stablecoins on its platform. The nation’s biggest cryptocurrency exchange could reverse its backing for legislation aimed at creating rules for the crypto market, which lawmakers plan to release Monday and review in Senate committee proceedings Thursday, a source close to the company told Bloomberg. The exchange wants any provisions about customer rewards limited to requiring more transparency, rather than outright bans or major limitations. Some proposals being discussed would only let licensed financial institutions offer such rewards, according to people working in the industry. Traditional banks support this approach, saying accounts that pay returns on stablecoins would pull money out of regular banks. Coinbase has asked regulators for a national trust charter that might eventually qualify it to provide rewards under these tighter rules. However, crypto companies want to keep offering platform rewards without needing such approval, warning that stronger limits could hurt fair competition. The possibility of Coinbase pulling its support carries weight Crypto companies spent more money on the 2023-2024 election than any other industry sector, pouring massive amounts into campaigns for their preferred politicians. Coinbase, run by co-founder and chief executive Brian Armstrong, gave $1 million to Donald Trump’s swearing-in ceremony and is helping fund the president’s planned White House ballroom. These rewards matter greatly to Coinbase’s bottom line. The company and Circle Internet Group Inc. split some of the interest earned from money backing Circle’s USDC stablecoin. USDC sitting in Coinbase accounts creates a reliable income that becomes especially important when crypto prices drop. Coinbase also holds a minority ownership in Circle, which is now the top stablecoin company following rules set by federal law passed…

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Filed under: News - @ January 11, 2026 9:12 pm